KE Holdings Inc (BEKE, Financial), a prominent player in the Real Estate industry, has seen a significant surge in its stock price over the past quarter. With a current market cap of $21.19 billion and a price of $17.04, the company's stock has gained 11.25% over the past week and 15.85% over the past three months. This article aims to provide an in-depth analysis of the company's stock performance, profitability, growth, and its position in the competitive landscape.
Stock Performance Analysis
KE Holdings Inc's stock has shown impressive performance recently. The company's stock price has seen a gain of 11.25% over the past week and a substantial increase of 15.85% over the past three months. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the GF Value of the stock is $17.69, down from $18.35 three months ago. Despite this slight decrease, the stock's GF Valuation has improved from being 'Modestly Undervalued' three months ago to being 'Fairly Valued' currently.
Introduction to KE Holdings Inc
KE Holdings Inc operates an integrated online and offline platform for housing transactions and services in the People's Republic of China. The company's Beike platform reinvents how service providers and housing customers efficiently navigate and consummate housing transactions, ranging from existing and new home sales, home rentals, to home renovation, real estate financial solutions, and other services. The company operates in four segments: Existing home transaction services; New home transaction services; Home renovation and furnishing; and Emerging and other services. The company generates maximum revenue from the New home transaction services segment.
Profitability Analysis
As of June 30, 2023, KE Holdings Inc's Profitability Rank is 4/10. The company's Operating Margin is 8.73%, which is better than 41.46% of 1775 companies in the same industry. The company's ROE, ROA, and ROIC are better than 68.68%, 78.03%, and 83.85% of companies respectively. Over the past 10 years, the company's profitability has been better than 3.45% of 1770 companies.
Growth Analysis
As of today, KE Holdings Inc's Growth Rank is 5/10. The company's 3-year and 5-year revenue growth rates per share are better than 65.89% and 85.46% of companies respectively. The company's future 3-year to 5-year total revenue growth rate estimate is 2.86%, which is better than 26.81% of 138 companies. The company's 3-year EPS without NRI growth rate and future 3-year to 5-year EPS without NRI growth rate estimate are better than 74.76% and 70% of companies respectively.
Top Holders of the Stock
The top three holders of KE Holdings Inc's stock are Jim Simons (Trades, Portfolio), Matthews Pacific Tiger Fund (Trades, Portfolio), and Baillie Gifford (Trades, Portfolio), who hold 0.73%, 0.32%, and 0.13% of the stock respectively.
Competitive Landscape
KE Holdings Inc operates in a competitive landscape with major competitors like Jones Lang LaSalle Inc(JLL, Financial) with a market cap of $6.58 billion, CoStar Group Inc(CSGP, Financial) with a market cap of $33.39 billion, and WeWork Inc(WE, Financial) with a market cap of $141.387 million.
Conclusion
In conclusion, KE Holdings Inc's stock has shown impressive performance over the past quarter with a significant surge in its price. The company's business model, profitability, and growth prospects make it a potential candidate for value investors. However, the competitive landscape and the company's current 'Fairly Valued' GF Valuation should be taken into consideration while making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
